January 4, 2023 – Surge Energy US Holdings Company (“Surge Energy” or the “Company”) announces it has commissioned the Phoenix electrical substation, the Company’s second electrical substation.  The company’s first electrical substation, the Dragon substation was commissioned in January 2020. This reduced the need for over forty well-site generators which significantly reduced both costs and GHG emissions. The Company estimates the removal of generators has resulted in a reduction of approximately 150,000 metric tons of CO2 emissions per year.

In December, the Phoenix substation was connected to the company’s power-line infrastructure which now includes over 150 miles of powerlines. The Phoenix substation will support recently acquired acreage in 2021 and will have similar environmental and cost-reduction benefits as the Dragon substation.
“Surge is proud to announce the start-up of Surge’s second electrical substation,” stated Chief Executive Officer Linhua Guan. “We believe this is another example of Surge’s commitment to sustainability as this investment in electrification of our field reduces both emissions and costs.”

About Surge Energy
Surge Energy is an independent oil and natural gas company focused on the development, exploitation, production and acquisition of oil and natural gas reserves in the Midland Basin of West Texas, one of three primary sub-basins of the Permian Basin. The Company is headquartered in Houston, Texas, and
currently holds approximately 114,000 net acres in the Permian Basin. For more information, visit our website at www.SurgeEnergyA.com.

Contact Information
Travis Guidry
Vice President of Corporate Development & Investor Relations
Email: TGuidry@SurgeEnergyA.com
Phone: 832-333-2339

Investor Relations
Email: InvestorRelations@SurgeEnergyA.com
Phone: 832-333-2400